Prime Minister George Papandreou underlined that the effort over the
next three years will be crucial for the future of the country, in an
address to his Inner Cabinet on Thursday that convened to ratify
Greece's updated Stability and Development plan ahead of its submission
to the European Commission the following day.

"We will leave all the deficits behind us," said Papandreou, adding
that "we must turn the biggest and most complex crisis of the last
decades into an opportunity for the country."

"We will reverse all the established situations that are holding our
country back," stressed Papandreou, who expressed his certainty that
the goal of fiscal streamlining in the space of the next three years
"is feasible with hard work".

The premier called for the acceleration of the reforms and changes,
underlining that "we know what's to blame better than anyone else", and
reiterated his position that "the country's fiscal problem is a symptom
of the chronic problem with the way of governance of the country being
the tip of the iceberg".

"The picture of a helpless country does not befit us. Just as we belied
the 'Cassandras' (doomsayers) in the past, we will again do so now. We
will not back down. There is no time to waste. The Stability plan is
our only choice," stressed Papandreou, expressing belief that "our EU
partners will appreciate not only the efforts of a government but of an
entire country", adding that, "at the end of this endeavor, every Greek
will be proud of his country".

"We will succeed because it is our historical duty and because this is
in the best interest of our country," concluded Papandreou.

The Cabinet on Thursday discussed and approved the country's "New
Stability and Growth Program - Roadmap for the restructuring of Greece"
after it was unveiled by finance minister George Papaconstantinou, and
which will be submitted to the European Commission on Friday.

Reduction of the state deficit from 12.7 percent of GDP in 2009 to 8.7
percent in 2010 and to 5.6 percent in 2011 is targeted in the updated
Stability and Growth Program.

For the two following years, the Program also envisages further
reduction of the deficit to 2.8 percent of GDP in 2012 and to 2.0
percent in 2013.

Regarding the state debt, the Program predicts an increase to 120.4
percent of GDP this year, from 113.4 percent in 2009, and a leveling
off at 120.6 percent in 2011, followed by de-escalation over the next
few years beginning in 2012.

The Program further envisages reduction of state expenditures and
increase in state revenues, while Papaconstantinou put emphasis on the
planned reform of the taxation system.

According to Papaconstantinou, the stability and development program
was drafted with the substantial contribution of many ministries, and
not only that of the economy, competitiveness and shipping ministry
"because it contains a series of deep-rooted changes that concern all
the ministries".

Papaconstantinou also noted that a team of experts from the European
Commission and the European Central Bank (ECB) had visited Greece in
recent days, which helped in drafting the final text.

He said that the program reflects the need for the government to set
out the quantified measures that will bring about a reduction of the
state deficit from 12.7 percent of GDP last year to 8.7 percent in
2010, while a further reduction will be achieved in the following
years.

The minister further said that the need arose for stipulating the
changes to the taxation system and the policies that will alter the
country's production model, and also to the social security and health
systems.

The program "has a springboard from which we are starting out" with
respect to the fiscal situation, Papaconstantinou said, "and explains
why we have no reached fiscal derailment".

He said that the program's macroeconomic scenario predicts negative
growth rate of 0.3 percent in 2010 against the -1.2 percent in 2009.
"It is a realistic scenario because there are funds in the economy that
can be channeled for growth, such as the 16 billion euros of the
National Strategic Reference Framework (NSRF)," he elaborated.

There are also specific policies for development and investments, while
a reduction of the deficit will also boost growth, he added.

"We will enter into a development that will be founded on investments
and exports, and not on consumption," the minister continued.

For the state debt, the program forecasts a de-escalation beginning in
2012, while it further details the institutional moves that will be
made for the adjustment, such as turning the National Statistics
Service (ESYE) into an autonomous body, the commitments to monitor the
budget on a monthly basis, and the channeling of a "reserve" of 10
percent from the expenditures to the ministries, with the exception of
salaries and pensions, in order to cover any excess expenditures and
delay in revenues.

The Stability and Development program will be submitted to the European
Commission on Friday, while it will be discussed by the Commission
plenary (College of Commissioners) on January 27 or February 4.

It will be further discussed by the Eurogroup and ECOFIN on February
15-16, at which time Greece is expected to enter into the excessive
debt procedure as per Article 104, Paragraph 9 of the EC Treaty.

Papaconstantinou said it was a difficult but ambitious program, a
program of the entire government, as reflected by its discussion by the
Cabinet, adding that it concerns the entire Greek society, which will
gain from it.

Finance Minister George Papaconstantinou on Thursday said the
government will do everything it needed to achieve the goals set in the
updated Stability and Growth Programme, stressing it was ready to take
additional measures, such as submitting a supplementary budget.

Speaking to reporters after presenting the updated programme, the Greek
minister said the government has drafted an alternative scenario with
even lower growth rates, compared with its main projections, adding
that additional measures worth 0.3 pct of GDP in 2011 and 0.3 pct of
GDP in 2012 could be needed in order to achieve fiscal consolidation.

Papaconstantinou said that if the alternative scenario prevails, "the
Stability and Growth Programme envisaged commitments for further
cutbacks in spending and higher taxes".

He added that the finance ministry would present to the Cabinet a full
report on its three-year privatisation programme in the next few weeks,
adding there was no decision taken so far, no discussion or examination
of a plan to privatise Hellenic Postbank and dismissed any such
reports. He reiterated the government's pledge not to cut its equity
stake in Hellenic Telecommunications Organisation (OTE).

Papaconstantinou acknowledged that it was difficult to persuade markets
and said he hoped that markets would have understood within the first
half of the year just how serious the government was in implementing
its programme. He said that according to early reactions by analysts
the country's updated stability programme was "ambitious and
difficult".

Meanwhile, National Bank of Greece's chief executive, Apostolos
Tamvakakis, speaking at a general shareholders' meeting of the bank
said "takeovers and mergers were not pre-announced".

He was commenting on shareholders' questions over National Bank's
stance in case the government decides to sell-off Hellenic Postbank.

"In these procedures there has to be always the element of surprise,"
Tamvakakis said. (See also Financial News)

Main opposition New Democracy (ND) party leader Antonis Samaras,
commenting on Thursday on the stability and growth programme presented
by the government, said that "despite the government's unjustified
delay and the fact that it ignored our constructive proposals, we point
out as positive the recording of certain measures (even though
incomplete) on the decrease of the monetary deficit in 2010."

Samaras spoke of "vacuums and weaknesses" in the programmme concerning
both the procedure and the essence and stressed that the ND will watch
step-by-step the implementation in practice of the government's
commitments on decreasing the deficit and the debt since it believes
that their full and reliable implementation will send the necessary
positive messages both to Brussels and the international markets.

"The plan of the Greek Stability and Growth Programme for 2010-2013 is
extremely important, not so because it reverses the budget of 2010 that
has only just been ratified but because it is going to be implemented
in a period of economic recession and the soaring of the country's cost
of loan holding," he said.

Elaborating on the "vacuums and weaknesses", the ND leader underlined
the following:

"-The government, while constantly invoking consultations, is proving
the contrary in this case, on such a serious issue. It is an insult
towards Parliament for the relevant minister to publicise the Programme
at noon, present it in Parliament in the afternoon and send it to the
EU the next day and promise a discussion afterwards.

"-With the exception of the first year, it does not include costed
measures on the decrease of the deficit.

"-It is deficient-inadequate regarding the basic target which is
monetary preservation over a three-year time horizon.

"-It lacks adequate offsetting measures in support of active demand for
the recovery of the Economy, which is also the basic precondition for
viable monetary stabilisation.

"-There are no adequate measures for handling unemployment and the
promotion of employment."

"What is necessary for the country to emerge from the present economic
and monetary deadlock is the creation of first stage surpluses that,
combined with the achievement of positive growth rates, will lead to
the organic de-escalation of the public debt as a percentage of GDP,
that is also the aim for monetary stabilisation," Samaras said.

"It is evident that in the PASOK government three whole months were
necessary for it to land from the demagoguery of the election period on
the harsh reality of the Stabilisation Programme that it submitted," he
added.

Opposition parties on Thursday expressed their disagreement with the
"express briefing" by Finance Minister George Papaconstantinou on the
Stability and Growth Programme, during the joint meeting of the
Parliamentary economic and European affairs committees, calling for the
postponement of the meeting for adequate time to be provided for them
to be informed of the content of the programme that covers many pages.

Main opposition New Democracy (ND) party Parliamentary representative
Manolis Kefaloyiannis said that an extension could be requested from
the European Commission so that the discussion could take place even
over the weekend, if necessary, so that all views could be voiced.

Communist Party of Greece (KKE) spokesman Nikos Karathanasopoulos said
that "when we have antipopular and undemocratic measures in essence we
shall have antipopular and undemocratic attitudes."

Popular Orthodox rally (LAOS) party deputy Constantine Aivaliotis said
"we must face the new commissioner Olli Rehn who is tougher than the
previous one, (Joaquin) Almunia," and added that the programme was only
received by the party two hours ago and their was no time to examine
it.

Radical Left Coalition (SYRIZA) Parliamentary Group president Alexis
Tsipras said that it is necessary that the discussion on the programme
should take place with adequate consultation time and in the plenum as
well.

Alternate Foreign Minister Dimitris Droutsas held talks with Lithuanian
Foreign Minister Vygaudas Usackas on Thursday saying afterwards that
"Greece has found in Lithuania a very good partner for the promotion of
the 'Agenda 2014'."

The talks focused mainly on European issues and had the character of an
initial "coordinating" meeting for the preparation of the successive
presidencies of the European Union of Greece and Lithuania.

Greece will assume the EU presidency in 2014, while it will be
promoting in the same year, as a milestone for the accession of the
Western Balkans to the EU, the "Agenda 2014" initiative.

Lithuania, which will be assuming the presidency in 2013 and must
coordinate itself with the previous and next presidency, through the
mandate of the Lisbon Treaty, took the initiative to invite the Greek
side for the beginning of a dialogue in the sectors which they will be
emphasising during their presidencies. The invitation included the
Irish Foreign Minister who postponed his visit suddenly.

It will be the first presidency for Lithuania and it needs Greece's
experience. Referring to the new Lisbon Treaty and its implementation,
Usackas said that a great deal will depend on the Spanish presidency
that will be the first after the implementation of the treaty, adding
that the sectors of mutual interest that were on the table with
Droutsas were, among others, energy, the need to maintain the
enlargement momentum and the protection of external borders.

The Lithuanian foreign minister made special reference to the
democratic dimension, saying that "we shall try in exercising the
presidency to bring the making of decisions procedure closer to the
citizens."

The Greek foreign minister reiterated, as he had done with his Latvian
counterpart on the previous day, the need "for the warming of the sense
of solidarity in the EU leading us to the right path in the future."

Earlier, Droutsas visited the Vilnius University where he was given a
guided tour by the dean and met with students of the modern Greek
language faculty.

On Thursday night, Droutsas was due to participating in the "meeting of
snow", a Lithuanian inititiave that is held over the last three years
at ministerial level and constitutes an international discussion on
cross-Atlantic relations and relations between NATO-US-EU-Russia. This
year, the ministers who have been invited from Sweden, Slovakia,
Hungary, Greece and Moldova will focus on European security issues.

Droutsas will be departing on Friday morning to attend the official
inauguration of the Thermes-Zlatograd corridor by the Prime Ministers
of Greece and Bulgaria.

Popular Orthodox Rally (LAOS) leader George Karatzaferis, with a letter
addressed to the parliament president, on Thursday requested an
off-the-agenda debate in Parliament focusing on the country's policy
for migrants.

Karatzaferis maintained that the government's intention to table a
draft law allowing second-generation immigrants to acquire Greek
nationality and giving foreign nationals that are long-term residents
the right to vote in local administration elections creates many
serious national, political and social side effects.

President of the Republic Karolos Papoulias is to receive Cyprus
President Demetris Christofias on Saturday night. The Cyprus president
is due in Athens earlier the same day for talks with Greece's state and
political leadership regarding the Cyprus issue.

Christofias' talks in Athens will focus on the latest developments in
the Cyprus problem after the last set of positions presented by
Turkish-Cypriot leader Mehmet Ali Talat, which are in no way
satisfactory to Greece and Cyprus.

On Sunday the Greek president will leave for Abu Dhabi, as the guest of
United Arab Emirates President Khalifa bin Zayid al-Nuhayyan, in order
to attend the World Future Energy Summit taking place there on January
18-21, in which he will be the keynote speaker.

During his stay in UAE, Papoulias will have meetings with the president
and his successor, Abu Dhabi Crown Prince Mohammed bin Zayid
al-Nuhayyan. The World Future Energy Summit is taking place under the
aegis of the crown prince.

Papoulias may also have other high-level bilateral contacts on the
sidelines of the summit.

Prime Minister George Papandreou and visiting Cyprus President Demetris
Christofias will visit the fire-stricken regions of Ileia next Sunday,
during Christofias' visit to Greece, in order to pay homage to the
assistance given by the Cyprus Republic after the devastating forest
fires of 2007.

At that time, by order of the late Cyprus President Tassos
Papadopoulos, Cyprus had undertaken to fund the rebuilding of an entire
village.

Papandreou announced the visit at the opening of Thursday cabinet
meeting and said that the government will soon table in Parliament an
updated version of a draft bill drawn up in 2007 by the PASOK party for
the reconstruction of the regions ravaged by fires.

Prime Minister George Papandreou on Thursday voiced support for and
solidarity with the people of Haiti following a devastating earthquake
that struck "one of the poorest countries of the planet".

Speaking at the start of a crucial Inner Cabinet meeting on the
economy, Papandreou called on his ministers to do everything possible,
each in his own area of authority, for immediate Greek assistance to
Haiti.

Papandreou also recalled that Haiti had been the first country, in
1822, to acknowledge the Greek Revolution (against Ottoman rule), while
adding that the latest developments "come to remind us that we do not
live alone in this world".

The foreign ministry is in constant contact with the Greek embassy in
Caracas (Venezuela), Greece's closest diplomatic mission from
earthquake-devastated Haiti, 14 of the 15 Greeks reported to be in the
country were all safe and well in health, deputy foreign minister
Spyros Kouvelis said on Thursday, adding that he had made contact with
them, while the 15th Greek citizen was on a cruise and it was not known
whether he had been in Haiti at the time of the quake.

On Wednesday, after the news of the earthquake broke, Kouvelis said
immediately contacted international organisations with access to the
island and able to provide assistance, including the World Food
Organisation, the World Health Organisation (WHO) and UNICEF), adding
that financial aid has also been dispatched.

Kouvelis explained that the idea of attempting to send a direct
dispatch of aid was rejected, given the distance and the conditions
prevailing in Haiti, which rendered such a contribution by Greece
unfeasible.

The deputy minister also appealed to all organisations or volunteer
groups wishing to help to contact the foreign ministry for better
coordination.

Finally, citizens seeking information on their relatives or others in
Haiti or to give information on Greeks in Haiti for tourism or for
trade purposes may call the ministry at 210-3681212, 210-3681730, and
210-3681350.

The Radical Left Coalition's (SYRIZA) Secretariat, commenting on
Thursday on the country's governance by PASOK so far, said that the
first 100 days of the country's governance by PASOK were mainly
characterised by the frontal attack on the achievements and rights of
working people, youth, the vast majority of the Greek people.

SYRIZA added that the country "is experiencing the most painful
consequences of the neoliberal options that took on greater dimensions
due to the international economic crisis that broke out a year and a
half ago."

It also accused the government that such options as "the decrease in
incomes, the rapid increase in unemployment and the escalation of the
deregulation of the labour market, the new tax raid on small and
medium-level working class incomes are being promoted with full
coordination with the plannings of the European Union, the IMF and
NATO."

The failure to catch the attackers of trade unionist Constantina
Kuneva, a full year after she was attacked, constituted an
"embarrassment for Greek democracy" according to Coalition of the
Radical Left (SYRIZA) Parliamentary group president Alexis Tsipras, in
statements on Thursday after meeting the All-Attica Union of Cleaners
and Domestic Staff.

"Also a great shame for our civilisation is the fact that the 'black
hole' of uninsured, badly paid employment, the slave trade of human
souls, in constantly widening in a sector where such incidents of
mafia-like behaviour seem lately to be multiplying," he added.

Responsibility for this situation was shared between governments, which
failed to uphold the laws, and the leadership of the trade union
movement that failed to take an interest in what were treated as
"second-class" workers, Tsipras asserted.

He also accused ruling PASOK and the government of changing its tune
and forgetting its former concern about the ever-deteriorating
conditions for labour now that it was in power.

Financial News

[15] Main points of Greece's updated Stability-Growth Programme
announced

Greece's fiscal deficit is projected to fall from 12.7 pct in 2009 to
8.7 pct in 2010, as the updated Stability and Growth Programme,
unveiled on Thursday, also cites that spending on wages and pensions
rose 11.5 pct last year and will slow to an increase of 2.8 pct in
2010, reflecting a cut in employment in the public sector, a tighter
incomes policy and a 10-pct decline in pay benefits to employees in the
wider public sector.

At the same time, spending on social insurance and operating spending
will be cut, the Greek government promised on Thursday.

The country's public debt is projected to rise from 99.2 pct in 2008 to
113.4 pct in 2009 and 120.4 pct in 2010, with total borrowing needs for
2010 estimated at 53.2 billion euros. The public debt, as a percentage
of the country's GDP, is expected to stabilise in 2011.

The Greek economy is expected to return to positive growth rates from
2011, the stability program said, after a negative growth of 0.3 pct
this year to rise to 1.5 pct in 2011, 1.9 pct in 2012 and 2.5 pct in
2013.

The country's fiscal deficit will fall from 12.7 pct of GDP in 2009 to
8.7 pct this year, to 5.6 pct of GDP in 2011, 2.8 pct in 2012 and 2.0
pct in 2013.

The government envisages that the fiscal deficit will fall by four
percentage points this year through a combination of higher revenues
and a cut in spending. More analytically, state revenues are projected
to increase through implementation of a new tax scale (1.1 billion
euros), new taxes on real estate property (400 mln), raising a special
consumption tax on tobacco and alcohol (710 mln euros), combating
tax-evasion (1.2 billion ), social insurance contribution evasion (1.2
billion euros), EU funds' inflows for the government's Public
Investment Programme (1.4 billion) and additional taxes on enterprises
and large real estate owners (around 1.0 billion euros).

On the other hand, savings will purportedly result from a 10-pct cut in
benefits allocated by the general government (650 mln), a freeze on new
hirings (80 mln), slashing public sector contract employment (120 mln),
cutting operating costs (360 million), lower subsidies payments to
pension funds (540 million), a cut in defence spending (457 million),
as well as lower spending on public hospital supplies (1.4 billion).

Finance Minister George Papaconstantinou said the stability and growth
programme also projects higher spending to support the economy, growth
and social cohesion in sectors, such as: the Public Investment
Programme, education, supporting low-income earners, the hiring more
healthcare staff in the sector, along subsidising contribution payments
on new hirings.

The Greek minister stressed that a drastic decrease of the country's
public debt, as a percentage of GDP, will begin in 2012, after
projecting a significant consolidation of its growth rate in the
meantime. This goal will be achieved with the process of fiscal
consolidation - aiming to produce primary budget surpluses from 2011 -
returning to positive growth rates as from 2011, promoting a
privatisation programme in the public sector (with estimated revenues
of around 2.3 pct of GDP in the next three years), and a return of 3.8
billion euros of capital offered to commercial banks during the
financial crisis period to boost liquidity.

The Greek economy is expected to shrink by 0.3 pct in 2010, after
shrinking by 1.2 pct in 2009. The updated stability and growth
programme envisages positive growth rates in the next three years (1.5
pct in 2011, 1.9 pct in 2012 and 2.5 pct in 2013.

The unemployment rate is projected to steadily rise from 9.0 pct in
2009 to 9.9 pct this year and 10.5 pct in 2011 and 2012, before start
falling to 10.3 pct in 2013.

The inflation rate is projected at 1.4 pct this year, from 1.2 pct in
2009, rising to 1.9 pct in 2011, only to stabilize around 1.8 pct in
2012 and 2013.

Public consumption is expected to fall by 4.4 pct in 2010, 5.9 pct in
2011 and 2013 and to rise by 0.7 pct in 2013, while private consumption
is projected to fall by 1.0 pct this year, rising 0.3 pct in 2011, 0.8
pct in 2012 and 1.0 pct in 2013.

Exports of goods and services are expected to rise by 2.5 pct this
year, after a decline of 16 pct in 2009, rising to 4.0 pct in 2011, 6.5
pct in 2012 and 7.2 pct in 2013. Imports are projected to fall 3.0 pct
this year, rising by 2.0 pct in 2011, 2.8 pct in 2012 and 3.4 pct in
2013.

Finally, commenting on reactions by markets, he said the government
should not use daily fluctuations in Greek bonds' spreads as a main
tool for dictating economic policy in the country.

Speaking later from Parliament, Papaconstantinou said the country's
"fiscal derailment" was due to the international economic crisis, to a
lesser degree, "although the biggest responsibility is linked with
consequences of the election cycle.

"...Revenue-collecting mechanisms collapsed; there was an explosion in
state spending, widespread waste and no productive objective," he said
in criticising the previous government for, among others, not listing
hospital debts on the state budget.

The Federation of Greek Enterprises and Industries (SEB) reacted
positively to the Stability and Growth programme for the economy that
was approved by the Ministerial Council on Thursday, but underlined the
dangers arising in the event that the programme is not implemented,
speaking of bankruptcy and foreign custody.

Federation president Dimitris Daskalopoulos said, among other things,
that "the government has diagnosed the basic problems and the 'road
map' that it is defining for their overcoming in the short and medium
term is in the correct direction provided, of course, that the measures
anticipated are implemented without compromises, without backtrackings.
What we must all realise is that we have no ground to fail."

He further said that "if public extravagance is not curbed drastically,
if this Stability Programme remains on paper as well, if it is annulled
by petty partisan conflicts, intraparty frictions and trade union
resistances, then our society will have signed its collective
bankruptcy and its self delivery to foreign custody. It depends on us."

Economy, Competitiveness and Shipping Minister Louka Katseli on
Wednesday evening spoke at a dinner hosted by the Hellenic-French
Chamber of Commerce in Athens.

The Minister focused on the government's actions and aims in economic
policy that will also bring the enhancement and invigoration of
Greece's and France's bilateral trade relations.

Katseli gave a speech on the theme "2010: Prospects in cooperation and
development" and emphasised the government's Stability plan and her
ministry's initiatives to boost market liquidity market and reduce
bureaucracy in the foundation and operation of enterprises foundation
in Greece. She also referred to the role that the programme "Invest in
Greece" and the Exports Promotion Organisation (OPE) may play in the
future.

The new staff members at the French Embassy in Athens and new managing
directors of member-companies of the Hellenic-French Chamber of
Commerce (Alstom Hellas, Alstom Transport, Danone, Emporiki Asset
Management, Emporiki Bank, Gefyra, Geniki Bank, Gras Savoye, I.F.A.,
Interattica, L' Oreal Hellas, Olympia Odos και Ubifrance) were
presented before the dinner.

The federation of fuel company vendors on Thursday vigorously came out
in favour of installing cash registers in petrol stations, a
long-standing demand by repeated governments that has always generated
opposition by the gas station owners' associations.

The federation said a system to monitor the intake and outtake of fuels
in stations should be installed in a second phase.

"Implementation of the measure to install cash registers is absolutely
necessary and will mark the inauguration of a system to monitor the
movement of fuels in stations, one that cannot be linked with any other
pre-conditions ... and something that exists in every other
member-state of the European Union and all other professional sectors,"
a federation press release stated, adding that any other reason cited
is merely a diversionary tactic aimed at delaying or preventing the
measure.

A controversial amendment dealing with tax issues, from a large hike in
taxes on cigarettes and alcoholic drinks to provisions relating to
inheritances and parental gifts tax, was tabled again in Parliament on
Friday in the form of a draft law using the provisions for urgent
proceedings.

The bill had originally been tabled as an amendment to an unrelated
bill on environmental issues, again on the grounds of urgency, but was
withdrawn by order of Finance Minister George Papaconstantinou after it
met with strong objections from both ruling PASOK and opposition party
MPs for violating Parliament's Rules of Procedure.

In addition to increasing tax on tobacco and alcohol, the bill
stipulates that the transfer of real estate from parents to their
children as a parental gift will be taxed according to a rate to be
decided over the next few months, after dialogue on tax reform is
completed and the relevant bill is passed. Until then, these
transactions will be taxed on the basis of current tax laws but this
will be 'provisional' and the final settlement will be made after the
bill is passed in early May.

Farmers in northern Greece were on Thursday working up to another round
of tractor blockades along national highways and at border crossings,
similar to those that had paralysed road travel into and across the
country last winter, with meetings to be held by regional farmer unions
over the coming weekend.

Kastoria prefecture farmers came out with their tractors on Thursday
and have already decided to blockade the Vogatsikos junction on Friday,
preventing vehicles from travelling from Kastoria to Thessaloniki and
from Kastoria to Albania.

Those in Florina prefecture have arranged to meet at the Krystallopigi
and Niki customs posts by noon on Friday, where they will decide any
further course of action, while farmers in Serres blocked a national
highway for a few hours on Thursday before withdrawing later the same
day and are due to come out in force again from Monday and block the
Promahonas border crossing.

Farmers in Thessaloniki prefecture have arranged to set up road blocks
next Tuesday, while those in Kilkis will hold their meeting outside the
Doirani customs post on Saturday, deciding on the spot whether to
blockade the border crossing into the Former Yugoslav Republic of
Macedonia. Those from Halkidiki are to hold a further meeting on
Thursday evening, after an unsuccessful meeting with Agriculture and
Foods Minister Katerina Batzeli on Wednesday.

Decisions on whether to join the action are still pending from farmers
in the prefectures of Pellas, Imathia and Grevena.

Stocks recovered some ground at the Athens Stock Exchange on Thursday,
following a recovery in intenational markets. The composite index ended
1.0 pct higher at 2,195.41 points, with turnover an improved 292.798
million euros.

The March contract on the FTSE 20 index was trading at a premium (0.37
pct) in the Athens Derivatives Exchange on Thursday, with turnover
remaining a moderate 92.810 million euros. Volume on the Big Cap index
totaled 13,408 contracts, worth 74.254 million euros, with 24,453 open
positions in the market.

Culture and Tourism Minister Pavlos Geroulanos on Thursday said in a
press conference that the government had succeeded in making
significant cost cuts at the state broadcaster ERT, chiefly by not
renewing the contracts of consultants and staff that provided little or
no services, thus saving nearly four million euros, by trimming pay
packets to its staff - including a 30 percent reduction in salaries of
general managers - thus bringing savings of over 2.0 million euros.

Speaking during a press conference, he announced that ERT would enter a
new phase of its operations after the appointment of a new president
and a new board director, who would be two separate people.

At that time, he clarified, decisions would be made about which
programmes would continue and which not, a new organisational chart
will be drawn up and a new policy for evaluating both programmes and
personnel will be unveiled.

He noted that the government's aim was to ensure transparency,
meritocracy and good quality programmes in the state broadcaster, while
its new management, to be appointed in the coming week, will be
selected based on their knowledge of management, technology and
political criteria.

The current board would remain for a short time after the new president
and board director were chosen, he added.

Infrastructure, Transport and Networks Minister Dimitris Reppas stated
ον Thursday that he is waiting for the proposals of the concessionaire
construction company that will define the method to be used and the
time needed to repair the damage and to allow the reopening of the
Athens-Thessaloniki motorway at the Tempi Valley section of central
Greece.

The specific section of the national highway has been closed to traffic
since Dec. 17, 2009 following a landslide.

Responding to a current question tabled in parliament by Communist
Party of Greece (KKE) MP Antonis Skyllakos, the minister clarified that
"based on the contract signed the maintenance, operation, safety and
exploitation of the motorway section in Tempi belongs exclusively to
the concessionaire company namely, the company that has undertaken to
build the new major motorway."

Reppas referred to the initiatives undertaken in the region aimed at
providing permanent solutions, including a monitoring system that will
record soil erosion phenomena. He pointed out that this is an ongoing
problem that deteriorates depending on the conditions present.

He also stated that representatives of the ministry, the TRAINOSE
railway company and the railway infrastructure manager company (EDISY)
are in the process of visiting European countries with "rolling
highway" technology which can be used to carry buses and trucks past
the blocked-off section of Greece's main north-south road axis.

[26] Trial on beating death of Australian youth Doujon Zammit opens on
Lesvos

The trial began on the island of Lesvos on Wednesday against a former
bouncer at a club on the island of Mykonos who is accused of
intentional homicide in the death of 20-year-old Australian tourist
Doujon Zammit outside the nightclub.

The trial opened Wednesday after Greece's Supreme Court on December 8
rejected an appeal by the criminal case defendant against a lower
appeals court ruling indicting him on intentional homicide charges in
the death of Zammit.

Zammit's beating death, which generated international media coverage,
occurred outside a bar on the island of Mykonos in late July 2008.

The defendant Marios-Sosipatros Antonopoulos, a bouncer at the now
defunct "Tropicana" club at the time of the fatal incident, is also
charged with the attempted homicide of other foreign tourists
accompanying the victim, possession of a lethal weapon and unprovoked
grievous bodily harm. Three other men, club staff who were with the
primary suspect and were released by a lower court, are co-defendants
and face the lesser charge of attempted homicide.

The trial began with the submission of a series of objections on the
trial procedure. Present in court were the victim's father Oliver and
mother Rose and his two brothers, who flew to Greece for the court
procedure, together with Costas Gribilas, who received Doujon's heart
in a transplant after the parents donated Doujon's organs after the
young man was declared clinically brain dead.

ΤέλοςφόρμαςΑρχήφόρμας"We are putting our faith and trust in the Greek
justice system and its lovely people who have supported us so far to
send out the right message that this is not Greek behaviour that has
been shown," Oliver Zammit said, adding that the perpetrators must be
punished.

The trial will resume on Thursday with Doujon's father, Oliver Zammit,
taking the stand.

The Zammit family has endeared itself to the Greek public, apart from
the compassion for the unprovoked loss of their son, with their
decision to donate Doujon's organs for transplant. Gribilas, who
received Doujon's heart, postponed his honeymoon to be at the Zammit
family's side during the trial. Gribilas recently married his
sweetheart Poppy in Sydney, with Oliver Zammit standing as his best
man.

The Athens Academy gave an award late last year to Oliver Zammit "for
his altruism and noble humanitarianism", while the Greek National
Transplant Organization (EOM) honored the family at a special ceremony
in Sydney, and the Onassis Cardiac Surgery Centre in Athens also held a
special event to honor the "extraordinary generosity" of the Zammit
family, and for raising awareness on organ donation.

The East Thessaloniki police drugs squad on Thursday reported
dismantling a large drug-trafficking operation dealing in large
quantities of illegal narcotics.

The bust followed the arrest of three Albanian nationals in a forest in
Kavalari as they were in the process of selling a package containing
five kilos of hashish to a Greek man, who was also arrested.

In the investigation that followed the arrest, police discovered a
further 65 kilos and 860 grammes of hashish buried in the surrounding
area.

The four men arrested, ranging in age from 22 years to 45 years, were
led before a public prosecutor. Two of them were later discovered to be
father and son.

The novel influenza A (H1N1) is reportedly abating in Greece although
scientists underline that the number of deaths caused by the virus has
risen in the past few weeks, the National Influenza Pandemic Committee
concluded on Thursday.

Seventeen of the 93 novel influenza victims since the outbreak of the
epidemic died in 2010. The latest victim is a 50-year-old woman who
suffered from diabetes and chronic respiratory failure, while a
six-year-old girl with no prior health problem is being treated in a
hospital's ICU since Wednesday.

Fifty people, on average, are being hospitalised on a daily basis with
novel influenza and the need for vaccination still exists, particularly
for high-risk population groups, according to the committee. Roughly 80
pct of the people who died from the novel influenza virus were in a
high-risk group and 20 pct had no prior health problems.

The annual Book Fair organised by the Association of Book Publishers of
Greece opens Friday in Klafthmonos Square in downtown Athens, and will
run for 10 days, through Sunday, January 24.

The country's largest book fair will cover an area of 1,000 square
meters, with more than 500,000 books of all genres on display,
including rare publications, which will be on offer for hefty discounts
of more than 70 percent off list prices.

The 2010 Book Fair, which is under the aegis of the Municipality of
Athens, will be open daily from 10:00 in the morning to 9:45 p.m.

Oscar-winning actress Olympia Dukakis will give a lecture on Jan. 19
entitled "A Woman's Story: a Conversation with Olympia Dukakis", within
the framework of her visit to the American College of Greece
(Deree-Pierce) on Jan. 18-23.

During her visit the noted Greek-American performer will also offer
acting master classes to ACG alumni and students of the college's
theatre arts programme.

Dukakis' visit launches a series of events celebrating the 135th
anniversary of the school.

A drug trafficking ring which channeled to the market approximately 71
kilos of cannabis was dismantled by the Thessaloniki Police Drug Squad
on Wednesday night.

According to police, the ring consisted of three Albanians aged from 22
to 49, which had in their possession 70 kilos and 875 grams of
cannabis. The three men were caught in the act and arrested while
attempting to sell 5 kilos of cannabis to a 40-year-old compatriot, who
was also arrested. The rest of the cannabis was found hidden in a
forest nearby.

In a separate incident three individuals, a 28-year-old Greek, a
33-year-old Albanian and a 29-years-old woman from Albania, were
arrested charged with drug dealing during well-organized Larissa
(central Greece) police operation.

The 22-year-old brother of a teen found on Wednesday morning stabbed to
death in his apartment in the district of Kaminia, Pireaus was led
before a prosecutor on Thursday, accused of the latter's murder.

The suspect turned himself in on Wednesday night and told police that
he stabbed his 18-year-old brother during a quarrel. He said that he
wandered for hours in Piraeus after he tried unsuccessfully to commit
suicide, before being spotted by is father who convinced him to go to
the police.

Cloudy and rainy weather and northerly winds are forecast in most parts
of the country on Friday, with wind velocity reaching 3-8 beaufort.
Temperatures will range between -1C and 16C. Cloudy with possible
showers in Athens, with northerly 4-6 beaufort winds and temperatures
ranging from 8C to 14C. Cloudy in Thessaloniki, with temperatures
ranging from 6C to 9C.

Prime Minister George Papandreou's reassurance that the country will
neither exit from the eurozone nor take recourse in the IMF, the
withdrawal of the amendment on parental gifts and Moody's report on the
Greek economy, dominated the headlines on Thursday in Athens'
newspapers.